The week began with markets watching oil prices and tensions in the Middle East, while attention shifted toward the labor market. Several reports were already pointing to slower job growth, raising questions about whether the Fed still has a reason to keep rates higher.
The jobs data came in much weaker than expected. July saw a loss of 23,000 jobs, while previous months were revised sharply lower, giving the Fed less reason to worry about an overheating labor market. Mortgage Bonds responded positively, helping push rates in a more favorable direction.
The weaker labor market could reduce the chances of another Fed rate hike, but inflation and oil prices remain important risks. For homebuyers, this week's jobs report is encouraging because a cooling economy can create more room for mortgage rates to improve, although the market is likely to remain volatile.
Take a first step towards your dream home
Free & non binding
No documents required
No impact on credit score
No hidden costs
NMLS #2619188
Settle down in your new home without a loan you had to settle for.
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
